FROM: Debby Cherney, Chief Executive Officer
Barbara Hannah, Chief Counsel
SUBJECT: Implementation of the exclusion of Night Standby (D06).
RECOMMENDATION:
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Approve and adopt [Proposed] SBCERA Resolution No. 2026-3 regarding the implementation of exclusion of Night Standby (D06).
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BACKGROUND:
The SBCERA Board of Retirement (Board) is required by Government Code section 31461 and 31542, as well as Board Benefits Policy No. 026 (Compensation Earnable and Pensionable Compensation) to determine what items of a member compensation are included or excluded in employee compensation upon which appropriate contribution rates should be applied and upon which retirement benefits are calculated.
This Board agenda item is a companion item to the Hearing Officer's Final Proposed Findings and Recommendation in the matter of Alameda Administrative Appeal of Clinical Laboratory Scientists (formerly known as Professional Lab Technicians), which is on the Board's agenda for consideration on March 5, 2026. In that item, the Hearing Officer recommended that the Night standby paycode D06 does not constitute compensation earnable and should be excluded from pension calculations. A copy of the proposed findings is attached hereto as Exhibit B.
The SBCERA Board previously adopted Resolution 2024-4, which excluded pay code D06 from compensation earnable, but at its meeting on December 5, 2024, directed staff to refer the factual and legal questions regarding implementation of the exclusion of Night Standby D06 pay to a hearing officer to review additional documentation and oral testimony of the affected members. The Board instructed staff to hold on any action to adjust existing monthly benefit payments of retirees with the D06 paycode incorporated into their payment calculation.
If the Board adopts the Hearing Officer's recommendations in the companion Board agenda item, the Board must now consider how to implement that recommendation. Staff reco...
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